Delaware Man Arrested for Home Improvement Fraud

Delaware State Police have arrested a 45-year-old Dagsboro, Delaware man in connection with a home improvement fraud case. James Gustafson Jr faces felony charges after allegedly taking payment for construction work that was never completed.

The investigation began in November 2024 when troopers received reports of fraudulent activity. Police determined that Gustafson had entered into a contract with a 60-year-old victim to perform construction work.

The suspect received $30,000 in payment but failed to complete the agreed-upon work. The victim was not reimbursed for the payment.

Gustafson was arrested on September 24, 2025, by the Ocean View Police Department. He was subsequently turned over to Delaware State Police troopers. The suspect was charged with Home Improvement Fraud by False Pretense involving $1,500 or greater, which constitutes a felony offense.

Following his arraignment at Justice of the Peace Court 2, Gustafson was released on his own recognizance. The case remains under investigation by Delaware State Police.

Authorities are asking additional potential victims to come forward. Anyone who may have been defrauded by Gustafson in similar circumstances is encouraged to contact Troop 4 Financial Crimes at 302-856-5850.

Information can also be provided through private Facebook messages to Delaware State Police or by contacting Delaware Crime Stoppers at 1-800-847-3333.

Disclosure: All individuals mentioned in this article are presumed innocent until proven guilty in a court of law. Eastern Shore Undercover® does not express or imply any opinion regarding the incident reported.